Question

Doug Lynchpin sold you an investment contract that pays $1,000 each year for the next 30...

Doug Lynchpin sold you an investment contract that pays $1,000 each year for the next 30 years. If you get a return of 10.45% on this investment, how much will you have in your account in 30 years (approximately)?

a)$217,000

b)$263,371

c)$148,288

d) $179,167

e) $9,084

Homework Answers

Answer #1

​​​​​​Amount you will have in account in 30 years = $179,167

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a 30 year coupon bond with a face value of $1,000 that pays $55 annual...
Consider a 30 year coupon bond with a face value of $1,000 that pays $55 annual coupons (beginning one year from today). Assume that you invest each coupon in a bank that pays 7% interest. On the maturity date, how much money do you have (in total) from the bond? Suppose that you bought the bond at issue for $860.84. What is your (average) annual return on the investment over the 30 years? A) 7.00% B) *6.80% C) 7.60% D)...
An investment pays you $50,000 at the end of each of the next 20 years. The...
An investment pays you $50,000 at the end of each of the next 20 years. The investment also pays you $1,000 at the end of each month over the same 20 year period. Assuming a discount rate of 10%, how much should you pay for this investment? Group of answer choices $529,303 $464,292 $610,462 $567,572 $495,048
1) You plan to deposit $2000 each year into an account for the next 5 years....
1) You plan to deposit $2000 each year into an account for the next 5 years. The discount rate is 12% for the next 3 years and 15% after that. What is the value today of your 5 deposits of $2000 each? 2) An investment pays no cash flows for the next 3 years. After three years, the investment pays $1000 per year for 10 years. After that, the investment pays $2000 per year forever. The appropriate discount rate is...
A) Assume that, starting next year, you make annual deposits of $ 950 into a savings...
A) Assume that, starting next year, you make annual deposits of $ 950 into a savings account that pays 6% interest. How much will you have in your account after 11 years? B) You made an investment over the past year, and your nominal return was 7.3%. Over the same year, the rate of inflation was 3.9%. What was the real rate of return for this investment? C) Assume that, starting next year, you will make deposits of $572 each...
You deposit $2,500 per year at the beginning of each of the next 30 years into...
You deposit $2,500 per year at the beginning of each of the next 30 years into an account that pays 6% compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The 30th and last deposit is made at the beginning of the 20-year period. The first withdrawal is made at the begining of the first year in the 20-year period.)
You are planning to save for retirement over the next 30 years. To do this, you...
You are planning to save for retirement over the next 30 years. To do this, you will invest $1,300 a month in a stock account and $1,000 a month in a bond account. The return of the stock account is expected to be 9 percent, and the bond account will pay 4 percent. When you retire, you will combine your money into an account with a 6 percent return. Required: How much can you withdraw each month from your account...
You can purchase an investment that pays $5,000 at the end of each year for twenty...
You can purchase an investment that pays $5,000 at the end of each year for twenty years. The investment pays a 3% annual interest rate. How much should you pay for the investment today?
You deposit $4,000 per year at the end of each of the next 25 years into...
You deposit $4,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much could you withdraw at the end of each year of the next 20 years? The first withdrawal is made at the end of the first year in the 20-year period. So you save for 25 years and withdraw for 20 years. ***Please use financial calculator and write down the steps to get the answer***
An investment will provide you with $100 at the end of each year for the next...
An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginning of each year? If you deposit those payments into an account earning 8%, what will the future value be in 10 years? What will the future value be if you open...
Assume you have chosen to invest the $1,000 monthly contributions at the end of each month....
Assume you have chosen to invest the $1,000 monthly contributions at the end of each month. Once retired, you will adjust your investment allocation to be more conservative and expect to average a 4% return on the account each year, compounded monthly. While retired, you plan to draw $5,000 from the account at the end of each month to go towards living expenses. You expect your lifespan in retirement to be 30 years. EXCEL format A. How much money will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT